GET DAILY SIGNALSSanmina (SANM) Delivers Strong Fourth-Quarter Results Fueled by AI Infrastructure Demand
Key Takeaways
- Sanmina reported fourth-quarter fiscal 2026 revenue of roughly $3.86 billion, up about 84% from $2.10 billion a year earlier.
- Non-GAAP diluted EPS came in at $4.43, comfortably above the $3.27 consensus estimate, while revenue also topped expectations.
- The integration of ZT Systems and strong demand across cloud and AI infrastructure helped lift results across end markets.
- Full fiscal 2026 revenue reached $14.53 billion, with non-GAAP diluted EPS of $13.28 and operating cash flow of $944 million.
- Management issued fiscal 2027 guidance calling for revenue of $17.5 billion to $19.5 billion and non-GAAP diluted EPS of $15.50 to $17.50.
Earnings Context and Why It Matters
Sanmina's fourth-quarter report closes out a fiscal year reshaped by its ZT Systems acquisition, which significantly expanded the company's footprint in cloud and AI infrastructure. The report matters because it offers the clearest read yet on whether that deal is translating into durable revenue growth, margin expansion, and cash generation. Heading into the print, SANM shares had lagged the broader market, reflecting investor uncertainty about integration costs and demand sustainability. A strong quarter against this backdrop carries weight for sentiment, while the company's fiscal 2027 outlook provides a framework for evaluating whether the momentum in data-center-related manufacturing can be sustained into the next reporting year. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
For the fourth quarter of fiscal 2026, Sanmina posted revenue of approximately $3.86 billion, an increase of about 84% from $2.10 billion in the prior-year period. On a GAAP basis, diluted EPS was $2.14, compared with $0.88 a year earlier. Non-GAAP diluted EPS, which excludes acquisition-related and other items, was $4.43, well above the $3.27 analyst consensus and up from $1.67 in the same quarter last year. Non-GAAP operating margin was 9.0%.
For the full fiscal year, revenue reached $14.53 billion, up 79%, with non-GAAP diluted EPS of $13.28 and GAAP diluted EPS of $6.85. The company generated $944 million in cash flow from operations and $541 million in free cash flow, repurchased about 2.4 million shares for $393 million, and ended the quarter with $1.68 billion in cash and equivalents.
Management also issued forward guidance. For the first quarter of fiscal 2027, Sanmina expects non-GAAP diluted EPS of $3.50 to $3.85 on revenue of $3.8 billion to $4.1 billion. For all of fiscal 2027, the company projects revenue of $17.5 billion to $19.5 billion and non-GAAP diluted EPS of $15.50 to $17.50.
Market Reaction and Investor Sentiment
SANM entered the report under pressure, with shares down roughly 10% year to date through early November compared with a gain in the broader S&P 500, reflecting investor caution around the ZT Systems integration and the company's elevated revenue base. The fourth-quarter results, which beat both EPS and revenue consensus estimates by wide margins, provided a constructive counterpoint to that skepticism. The dual beat, combined with above-consensus forward guidance, gives investors a tangible reason to reassess the growth narrative. Sentiment is likely to hinge on whether the company can sustain non-GAAP operating margins near 9% while scaling its cloud and AI-related manufacturing capacity without incurring meaningful integration friction.
Forward Outlook and Key Factors to Monitor
Following this report, investors will be watching whether Sanmina can convert its enlarged revenue base into consistent margin and cash-flow growth. The fiscal 2027 outlook, which calls for revenue between $17.5 billion and $19.5 billion, implies further expansion from fiscal 2026 levels, but execution will depend on how smoothly the ZT Systems integration progresses and whether demand in cloud and AI infrastructure remains robust.
Key factors to monitor include gross and operating margin trends, particularly any lingering acquisition-related costs such as inventory step-up amortization and intangible amortization. Free cash flow will also be an important signal of the deal's long-term value, given that Sanmina generated $541 million in fiscal 2026.
Broader industry dynamics matter as well. Capital spending patterns among large cloud and data-center customers can shift quickly, and any slowdown in AI-related hardware demand could weigh on the company's growth trajectory. Cost trends in components, labor, and logistics, along with customer concentration, remain relevant risks. For now, the company's guidance and cash position provide a foundation, but investors will be looking for confirmation that the growth story can be sustained beyond the initial integration phase.
Refining Research with AI Tools
I also turned to Tickeron’s AI Screener when reviewing comparable names in the sector. It helped surface a few patterns worth monitoring as the integration story plays out, giving me a clearer sense of how SANM stacks up against peers on key metrics.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
SANM's RSI Indicator is staying in oversold zone for 2 days
It is expected that a price bounce should occur soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +8.95% 3-day Advance, the price is estimated to grow further. Considering data from situations where SANM advanced for three days, in 246 of 323 cases, the price rose further within the following month. The odds of a continued upward trend are 76%.
SANM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 07, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on SANM as a result. In 51 of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 61%.
The Moving Average Convergence Divergence Histogram (MACD) for SANM turned negative on October 08, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 39 similar instances when the indicator turned negative. In 30 of the 39 cases the stock turned lower in the days that followed. This puts the odds of success at 77%.
SANM moved below its 50-day moving average on October 14, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for SANM crossed bearishly below the 50-day moving average on October 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 15 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 83%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SANM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 64%.
The Aroon Indicator for SANM entered a downward trend on November 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 58 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock slightly better than average.
The Tickeron Valuation Rating of 59 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.820) is normal, around the industry mean (3.856). P/E Ratio (23.587) is within average values for comparable stocks, (6.228). Projected Growth (PEG Ratio) (0.754) is also within normal values, averaging (0.930). Dividend Yield (0.000) settles around the average of (0.021) among similar stocks. P/S Ratio (0.845) is also within normal values, averaging (4.422).
The Tickeron SMR rating for this company is 62 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 85 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 85 (best 1 - 100 worst), indicating slightly worse than average price growth. SANM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a provider of integrated electronics manufacturing services
Industry ElectronicComponents
Advertisement